Have you ever wondered which companies are driving China’s dominance in the global steel industry? Let’s take a look at the top electric steel factories in China, where giants like China Baowu Steel Group, HBIS, and Tsingshan Holding Group are setting new standards in steel production and innovation. Here’s a closer look at these industry leaders and what makes them stand out.

Electrical steel now China’s star product amid global …

Product Details: Electrical steel, also known as silicon steel or lamination steel, is a specialized iron alloy containing silicon instead of carbon. It is designed to minimize energy losses during the conversion and transmission of electrical power. Electrical steel is produced in two main types: grain-oriented electrical steel (GOES) and non-grain-oriented electrical steel (NGOES), each tailored for specific applications. It is used in the cores of transformers, motors, generators, and other electromagnetic devices due to its high magnetic permeability, low core losses, and high electrical resistivity.

Pros:
– Enhances efficiency by reducing core losses and eddy currents, leading to signif…
– Reduces operating costs by consuming less electricity, which saves money on ener…
– Enables the production of smaller and lighter electromagnetic devices while main…
– Minimizes environmental impact by reducing energy consumption and heat generatio…
– Improves the performance and reliability of electrical machines such as transfor…

Cons:
– Higher production costs due to the specialized formulation and manufacturing pro…
– Limited availability and higher pricing compared to regular steel products.
– Requires precise engineering and quality control to achieve optimal magnetic pro…

China’s non-grain oriented electrical steel market rise …

Product Details: China dominates the global capacity for both grain-oriented and non-oriented electrical steel. In 2023, China’s output of grain-oriented electrical steel reached 620,000 tonnes, accounting for 56% of global production, with Baosteel alone producing 500,000 tonnes. For non-oriented electrical steel, China accounted for 72% of global production, led by producers such as Baosteel, WISCO, Ansteel, and Shagang. The global market for new energy-grade electrical steel reached 1.3 million tonnes in 2023, with Chinese manufacturers accounting for more than half of the output[1].

Pros:
– High magnetic permeability, making it ideal for magnetic applications
– Low hysteresis loss and low eddy current loss, suitable for high-efficiency moto…
– Excellent corrosion and wear resistance, suitable for harsh environments
– Good formability, allowing it to be molded into complex geometric shapes
– High electrical resistance, making it highly suitable for electrical equipment a…

Cons:
– High cost, two to three times more expensive than conventional steel
– Difficult to process due to its hardness and brittleness, increasing project cos…
– Limited availability of specific sizes and shapes, which can delay projects and…
– Risk of overcapacity, particularly in high-end products, which could lead to mar…

ArcelorMittal and China Oriental set up an electric steel …

Product Details: ArcelorMittal and China Oriental Group are establishing a joint venture to produce electrical steel in China. The joint venture will involve a $660 million investment to build a hot-rolled electric steel production line, expected to start operating in 18 months with an initial capacity of 2.5 million tons per year, potentially increasing to 3.5 million tons. Raw materials will be supplied by Hebei Jinxi Steel, a China Oriental subsidiary. Additionally, a $2 billion investment will be made in producing soft magnetic materials for the new energy market, with production expected to start in 26 months and an initial capacity of

1.5 million tons per year, potentially increasing to 1.8 million tons. The products will serve the automotive industry, industrial motors, household appliances, and energy sectors.

Pros:
– Environmentally friendly production, leveraging modern technology and materials.
– Energy-efficient, with lower energy consumption compared to traditional steel pr…
– Support from local governments, including the Qianxi County Government and the C…
– Strategic importance in capturing 5% to 10% of China’s hot-rolled electric steel…

Cons:
– High initial investment of $660 million for the hot-rolled electric steel produc…
– Dependence on raw material supply, which could be affected by market conditions…

China installs enough low-carbon steelmaking capacity to …

Shift in how China uses and develops its steel capacity can …

Electrical Steel

Product Details: Electrical steel, also known as silicon steel, is a ferrosilicon soft magnetic alloy steel with very low carbon content, usually containing 0.5% to 4.5% silicon. It is available in widths of 900-1230 mm and thicknesses of 0.27mm, 0.30mm, 0.35mm, and 0.50mm. The coil inner diameter is 508mm or 610mm. It meets various international standards including AISI, ASTM, BS, DIN, GB, JIS, and EN. There are two main types: oriented electrical steel and non-oriented electrical steel. Oriented electrical steel has strong directionality, low iron loss, and high magnetic permeability, while non-oriented electrical steel has randomly distributed grains and is mainly used

in motors and generators.

Pros:
– Stable performance
– Excellent processing performance: High precision dimension and excellent mechani…
– Excellent performance of Insulating coating: Uniform color, good insulation, hig…
– High magnetic permeability: It can easily conduct magnetic flux, making it suita…
– Low hysteresis loss and low eddy current loss: These properties make it ideal fo…
– Good formability: It can be easily molded into complex geometric shapes without…
– Good corrosion resistance: It can be used in harsh environments without degradat…

Cons:
– High cost: Electrical steel can be two to three times more expensive than conven…
– Difficult to process: It is hard and brittle, making it challenging to cut, weld…
– Limited availability: Specific sizes and shapes required for certain application…

Non-oriented electrical steel

Product Details: Baosteel’s electrical steel products include non-oriented electrical steel sheets. These sheets are categorized into various grades such as B35A, B50A, and B65A, each with specific nominal thickness, density, maximum iron loss, and minimum magnetic induction. For example, the B50A230 grade has a nominal thickness of 0.50 mm, a density of 7.65 kg/dm^3, and a maximum iron loss of 2.30 W/kg at 15/50 Hz[5].

Pros:
– High strength-to-weight ratio, making it lightweight and strong[4] – Easy to fabricate and produce massively, allowing for prefabrication and quick a…
– Flexible and can be molded into various shapes without changing its properties[4…
– Relatively cheap compared to other building materials[4] – Durable and can withstand external pressures like earthquakes and storms[4] – Sustainable and recyclable[2]

Cons:
– Susceptible to corrosion, especially when exposed to the elements[2][4] – High maintenance costs, including the need for anti-corrosion treatments and pai…
– Risk of buckling in slender columns, which can compromise structural integrity[2…
– High expansion rate with changing temperatures, which can be detrimental to the…
– Extensive fireproofing costs as steel is not fireproof and loses properties in h…

Leading Grain-Oriented Electrical Steel Supplier in China

Product Details: Grain Oriented Electrical Steel (GOES) is a type of electrical steel known for its controlled grain orientation. It is produced through a process that involves careful annealing and rolling to induce anisotropy, aligning the crystal grains in a specific direction. This alignment results in superior magnetic properties in the direction of rolling, including high magnetic flux density and low core losses. GOES typically contains 3% silicon and is used in high-efficiency power and distribution transformers, as well as in certain audio output transformers.

Pros:
– Superior magnetic properties in the rolling direction, resulting in reduced core…
– High magnetic flux density and low iron loss characteristics, making it efficien…
– Corrosion resistant and durable, extending the lifespan of electrical devices.
– Ideal for applications where magnetic flux flows in a consistent direction, such…

Cons:
– High cost due to the complex and specialized manufacturing process.
– Limited availability because of the few manufacturers producing it.
– Requires careful handling and orientation to maximize its magnetic properties.
– Higher exciting current at high flux density if silicon content is not optimal.

Electrical steel becomes a key product in China’s …

Fives and Baowu launch new electrical steel lines

Product Details: Baowu Steel Group and Fives have launched new production lines for high-performance electrical steel at Baowu’s Shanghai site. The project includes a new annealing and pickling line (APL) and two new annealing and coating lines (ACL). These lines are designed to produce high-quality non-grain oriented (NGO) grades for electric vehicle motors. The thermal section of the lines features a horizontal furnace capable of reaching a strip temperature of 1,100 °C with the AdvanTek® combustion system and advanced furnace atmosphere management using seal gates, high hydrogen-rich and dew point controlled sections. The lines delivered their first coil between December 2022 and

February 2023.

Pros:
– Advanced thermal technology with horizontal furnace capable of reaching 1,100 °C
– Best Available Technology for furnace atmosphere management
– High-quality non-grain oriented (NGO) grades for electric vehicle motors
– Successful production despite challenging times of lockdowns and travel restrict…
– Resilience in overcoming operational difficulties to meet client targets and sch…

Cons:
– Production of silicon steel grades requires advanced and challenging technologie…
– High working frequencies and minimal core losses present technical challenges

Comparison Table

Frequently Asked Questions (FAQs)

Frequently Asked Questions About Electrical Steel Factories in China

What is China’s current position in the global electrical steel market?

China dominates the global electrical steel market, producing 56% of the world’s grain-oriented electrical steel and 72% of the world’s non-oriented electrical steel. Major Chinese producers like Baosteel, WISCO, Ansteel, and Shagang lead the global market in this sector.

How is China addressing the issue of overcapacity in electrical steel production?

To manage overcapacity, China has implemented policies such as suspending the replacement of lost steel capacity. Experts and industry leaders are urging manufacturers to carefully manage production levels to avoid market saturation, especially in high-end electrical steel products. Provincial governments are also required to cut steel production in response to overcapacity.

What steps is China taking to decarbonize its steel production, including electrical steel?

China is shifting towards cleaner production methods by promoting the use of electric arc furnaces (EAFs) that process recycled scrap steel. The country aims for 15% of steel production to be through EAFs by 2025 and 20% by 2030. Additionally, China is exploring the H2-DRI-EAF process, which significantly reduces carbon emissions, and has introduced policies to support decarbonization, including tax and financial assistance for producers using domestic scrap steel.

How does China’s electrification drive impact the demand for electrical steel?

China’s vigorous promotion of electrification is driving growth in the demand for electrical steel, particularly in sectors like power generation, transmission, and consumption. However, the industry must balance supply and demand carefully to avoid overproduction, as the growth in supply may outpace demand growth.

What are the key challenges and opportunities for Chinese electrical steel manufacturers in the green energy transition?

Chinese electrical steel manufacturers face the challenge of managing overcapacity while capitalizing on the growing demand for energy-efficient solutions. The industry has significant opportunities in producing high-quality electrical steel for green energy applications, but it must navigate the risks of market saturation and ensure compliance with new decarbonization policies and targets.